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H.R.2574
Pro-Family, Pro-Growth, Pro-Reform Tax Reduction Act of 1999
(Introduced in the House)
`Sec. 280B. Demolition of certified historic structures and historically
residential structures.'
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
demolitions commencing after the date of the enactment of this Act.
SEC. 504. INCREASE IN LAND DONATION TAX DEDUCTION FROM 30 PERCENT TO 50
PERCENT.
(a) MODIFICATIONS TO ENCOURAGE CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
MADE FOR CONSERVATION PURPOSES AND QUALIFIED CONSERVATION CONTRIBUTIONS-
(1) CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR CONSERVATION
PURPOSES AND OF QUALIFIED CONSERVATION CONTRIBUTIONS NOT SUBJECT TO SPECIAL
LIMITATION ON CONTRIBUTIONS OF CAPITAL GAIN PROPERTY- Subparagraph (C) of
section 170(b)(1) of the Internal Revenue Code of 1986 (relating to special
limitation with respect to contributions described in subparagraph (A) of
capital gain property) is amended by redesignating clause (iv) as clause (v)
and by inserting after clause (iii) the following new clause:
`(iv) In the case of charitable contributions described in
subparagraph (A) of capital gain property, clauses (i) and (ii) shall
not apply to--
`(I) any qualified conservation contribution (as defined in
section 170(h)), or
`(II) any other contribution of capital gain property which is
real property if the contribution is of the donor's entire interest in
such property and is to a qualified organization (as defined in
section 170(h)(3)) which is organized for conservation purposes (as
defined in section 170(h)(4)(A)) and which provides the taxpayer, at
the time of such donation, a letter of intent which contains an
acknowledgment of the donee's intent that the property is being
acquired for any such conservation purpose.'.
(2) UNLIMITED CARRYOVER FOR CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
FOR CONSERVATION PURPOSES AND OF QUALIFIED CONSERVATION CONTRIBUTIONS OF
CAPITAL GAIN PROPERTY- Paragraph (1) of section 170(d) of such Code in
amended by adding at the end the following new subparagraph:
`(C) UNLIMITED CARRYOVER FOR CONTRIBUTIONS OF CAPITAL GAIN REAL
PROPERTY FOR CONSERVATION PURPOSES AND OF QUALIFIED CONSERVATION
CONTRIBUTIONS OF CAPITAL GAIN PROPERTY- The 5 taxable year limitation in
subparagraph (A) shall not apply to any charitable contribution to which
clauses (i) and (ii) of subsection (b)(1)(C) do not apply by reason of
clause (iv) thereof. For purposes of this paragraph, the excess described
in the material preceding clause (i) of subparagraph (A) shall be treated
as attributable to contributions described in the preceding sentence of
this subparagraph to the extent of such contributions.'.
(3) EFFECTIVE DATE- The amendment made by this section shall apply to
contributions made in taxable years beginning after the date of the
enactment of this Act.
(b) MODIFICATION OF RULES RELATING TO ESTATE TAX EXCLUSION FOR LAND SUBJECT TO
QUALIFIED CONSERVATION EASEMENT-
(1) REPEAL OF CERTAIN
RESTRICTIONS ON WHERE LAND IS LOCATED- Clause (i) of section 2031(c)(8)(A)
of the Internal Revenue Code of 1986 is amended to read as follows:
`(i) which is located in the United States or any possession of the
United States,'.
(2) REPEAL OF LIMITATION
ON EXCLUSION-
(A) IN GENERAL- Paragraph (1) of section 2031(c) of such Code is
amended by striking `the lesser of--' and all that follows and inserting
`the applicable percentage of the value of land subject to a qualified
conservation easement, reduced by the amount of any deduction under
section 2055(f) with respect to such land.'
(B) CONFORMING AMENDMENTS-
(i) Subsection (c) of section 2031 of such Code is amended by
striking paragraph (3) and by redesignating paragraphs (4) through (10)
as paragraphs (3) through (9), respectively.
(ii) Paragraphs (2) and (6) of section 2031(c) of such Code, as
redesignated by subparagraph (A), are each amended by striking
`paragraph (5)' and inserting `paragraph (4)'.
(iii) Paragraphs (1), (6), and (7)(A)(iii) of section 2031(c) of
such Code, as redesignated by subparagraph (A), are each amended by
striking `paragraph (6)' and inserting `paragraph (5)'.
(3) DATE FOR DETERMINING VALUE OF LAND AND EASEMENT- Paragraph (2) of
section 2032(c) of such Code (defining applicable percentage) is amended by
adding at the end the following new sentence: `The values taken into account
under the preceding sentence shall be such values as of the date of the
contribution referred to in paragraph (7)(B).'
(4) CERTAIN COMMERCIAL RECREATIONAL USES PERMITTED- Subparagraph (B) of
section 2031(c)(7) of such Code, as redesignated by subsection (b), is
amended to read as follows:
`(B) QUALIFIED CONSERVATION EASEMENT-
`(i) IN GENERAL- The term `qualified conservation easement' means a
qualified conservation contribution (as defined in section 170(h)(1)) of
a qualified real property interest (as defined in section 170(h)(2)(C)),
except that clause (iv) of section 170(h)(4)(A) shall not apply, and the
restriction on the use of such interest described in section
170(h)(2)(C) shall include a prohibition on more than a de minimis use
for a commercial recreational activity.
`(ii) SPECIAL RULES- For purposes of this paragraph--
`(I) RETAINED RIGHTS- Rights retained in the conservation easement
to lease the land for hunting and fishing, so long as such leases are
not inconsistent with the conservation purpose of the easement, shall
be deemed to be de minimis use.
`(II) PRE-EFFECTIVE DATE EASEMENTS- Easements otherwise qualifying
under the provisions of this subsection that were donated on or before
the date of the enactment of this subclause, shall be deemed to allow
no more than de minimis use for a commercial recreational activity
unless by their terms they expressly provide for commercial
recreational activity in excess of that otherwise allowed by this
subparagraph.
`(III) AUTHORITY TO EXTINGUISH RIGHT OF COMMERCIAL RECREATION
ACTIVITY- For purposes of this section, if the executor of an estate and every person in
being who has an interest in the land execute an agreement to amend or
extinguish any right under the easement of commercial recreation
activity in the land so as to ensure that such land is used for no
more than de minimis commercial recreational activity, such agreement
shall be treated as in effect as of the date of the election described
in paragraph (5).'
(5) EXCLUSION APPLICABLE TO SOLD EASEMENTS- Clause (i) of section
2031(c)(7) of such Code, as amended by subsection (d), is amended by adding
at the end the following new sentence: `A transfer for value of a qualified
real property interest (as defined under section 170(h)(2)(C)) shall not
fail to be treated as a qualified conservation easement if such interest
would meet the requirements of the preceding sentence were it donated to the
purchaser and any reference in this section to a contribution shall be
treated as including a reference to such a transfer.'
(6) EFFECTIVE DATE- The amendments made by this section shall take
effect as if included in the amendments made by section 508 of the Taxpayer
Relief Act of 1997.
SEC. 505. TEMPORARY SUSPENSION OF MAXIMUM AMOUNT OF AMORTIZABLE
REFORESTATION EXPENDITURES.
(a) INCREASE IN DOLLAR LIMITATION- Paragraph (1) of section 194(b) of the
Internal Revenue Code of 1986 (relating to amortization of reforestation
expenditures) is amended by striking `$10,000 ($5,000' and inserting `$25,000
($12,500'.
(b) TEMPORARY SUSPENSION OF INCREASED DOLLAR LIMITATION- Subsection (b) of
section 194(b) of such Code (relating to amortization of reforestation
expenditures) is amended by adding at the end the following new paragraph:
`(5) SUSPENSION OF DOLLAR LIMITATION- Paragraph (1) shall not apply to
taxable years beginning after December 31, 1999, and before January 1,
2004.
(c) CONFORMING AMENDMENT- Paragraph (1) of section 48(b) of such Code is
amended by striking `section 194(b)(1)' and inserting `section 194(b)(1) and
without regard to section 194(b)(5)'.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1998.
TITLE VI--ESTATE TAX REDUCTION
SEC. 601. REPEAL OF LIMITATION
ON ESTATE TAX DEDUCTION FOR FAMILY-OWNED BUSINESS
INTERESTS.
(a) IN GENERAL- Subsection (a) of section 2057 of the Internal Revenue
Code of 1986 (relating to family-owned business interests) is amended to read
as follows:
`(a) ALLOWANCE OF DEDUCTION- For purposes of the tax imposed by section 2001, in the
case of an estate of a decedent
to which this section applies, the value of the taxable estate shall be determined by
deducting from the value of the gross estate the adjusted value of the
qualified family-owned business interests of the decedent which are described
in subsection (b)(2).'
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
estates of decedents dying after the date of the enactment of this Act.
SEC. 602. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT OF PREDECEASED
SPOUSE.
(a) IN GENERAL- Section 2010 of the Internal Revenue Code of 1986
(relating to unified credit against estate tax ) is amended by redesignating
subsections (c) and (d) as subsections (d) and (e), respectively, and by
inserting after subsection (a) the following new subsection:
`(c) INCREASE IN CREDIT FOR UNUSED UNIFIED CREDIT OF PREDECEASED
SPOUSE-
`(1) IN GENERAL- The amount of the credit allowable under subsection (a)
shall be increased by the aggregate of the amounts of the unused predeceased
spouse credit.
`(2) UNUSED PREDECEASED SPOUSE CREDIT- For purposes of paragraph
(1)--
`(A) IN GENERAL- The term `unused predeceased spouse credit' means,
with respect to any predeceased spouse of the decedent, the amount equal
to the excess of--
`(i) the maximum amount allowable under subsection (a) to the estate of such spouse,
over
`(ii) the tax imposed
by section 2001 reduced by the credits against such tax other than the credit
allowed by this section.
`(B) LIMITATION BASED ON CREDIT EQUIVALENT OF VALUE OF PROPERTY
PASSING TO DECEDENT FROM PREDECEASED SPOUSE- The amount of the unused
predeceased spouse credit with respect to any predeceased spouse shall not
exceed the credit equivalent of the aggregate value of property acquired
from or passing from (within the meaning of section 1014) the predeceased
spouse to the decedent.
`(C) CREDIT EQUIVALENT- For purposes of subparagraph (B), the credit
equivalent is the amount of the tentative tax which would be determined
under the rate schedule set forth in section 2001(c) if the amount with
respect to which the tentative tax is to be computed were the
aggregate value of the property referred to in subparagraph (B).
`(3) LIMITATION ON AGGREGATE INCREASE WHERE MORE THAN 1 PREDECEASED
SPOUSE- In no event may the amount of the increase under paragraph (1)
exceed the dollar amount contained in subsection (a).
`(4) PREDECEASED SPOUSE- For purposes of this subsection, the term
`predeceased spouse' means, with respect to the decedent, an individual who
was married to the decedent on the date of such individual's death.'
(b) GIFT TAX - Section 2505
of such Code is amended by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively, and by inserting after subsection (a)
the following new subsection:
`(b) INCREASE IN CREDIT FOR UNUSED UNIFIED CREDIT OF PREDECEASED SPOUSE-
Rules similar to the rules of section 2010(c) shall apply with respect to
calendar years beginning after the date of death of any predeceased spouse of
the donor.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
estates of decedents dying, and gifts made, after the date of the enactment of
this Act.
TITLE VII--FAMILY ENHANCEMENT
SEC. 701. NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST ALTERNATIVE MINIMUM
TAX .
(a) IN GENERAL- Subsection (a) of section 26 of the Internal Revenue Code
of 1986 is amended to read as follows:
`(a) LIMITATION BASED ON AMOUNT OF TAX - The aggregate amount of credits
allowed by this subpart for the taxable year shall not exceed the taxpayer's
regular tax liability for the
taxable year.'
(b) CONFORMING AMENDMENT- Subsection (d) of section 24 of such Code is
amended by striking paragraph (2) and by redesignating paragraph (3) as
paragraph (2).
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 702. ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION.
(a) IN GENERAL- Paragraph (2) of section 63(c) of the Internal Revenue
Code of 1986 (relating to standard deduction) is amended--
(1) by striking `$5,000' in subparagraph (A) and inserting `twice the
dollar amount in effect under subparagraph (C) for the taxable year',
(2) by adding `or' at the end of subparagraph (B),
(3) by striking `in the case of' and all that follows in subparagraph
(C) and inserting `in any other case.', and
(4) by striking subparagraph (D).
(b) TECHNICAL AMENDMENT- Subparagraph (B) of section 1(f)(6) of such Code
is amended by striking `(other than with' and all that follows through `shall
be applied' and inserting `(other than sections 63(c)(4) and 151(d)(4)(A))
shall be applied'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 703. EXPANSION OF DEPENDENT CARE TAX CREDIT.
(a) IN GENERAL- Paragraph (2) of section 21(a) of the Internal Revenue
Code of 1986 (relating to expenses for household and dependent care services
necessary for gainful employment) is amended to read as follows:
`(2) APPLICABLE PERCENTAGE DEFINED- For purposes of paragraph (1), the
term `applicable percentage' means 50 percent reduced (but not below 20
percent) by 1 percentage point for each $1,000 (or fraction thereof) by
which the taxpayer's adjusted gross income for the taxable year exceeds
$30,000.'
(b) MINIMUM CREDIT ALLOWED FOR STAY-AT-HOME PARENTS- Section 21(e) of such
Code (relating to special rules) is amended by adding at the end the
following:
`(11) MINIMUM CREDIT ALLOWED FOR STAY-AT-HOME PARENTS- Notwithstanding
subsection (d), in the case of any taxpayer with one or more qualifying
individuals described in subsection (b)(1)(A) under the age of 1 at any time
during the taxable year, such taxpayer shall be deemed to have
employment-related expenses with respect to such qualifying individuals in
an amount equal to the greater of--
`(A) the amount of employment-related expenses incurred for such
qualifying individuals for the taxable year (determined under this section
without regard to this paragraph), or
`(B) $125 for each month in such taxable year during which such
qualifying individual is under the age of 1.'.
(c) INFLATION ADJUSTMENT OF DOLLAR AMOUNTS-
(1) Section 21 of such Code is amended by redesignating subsection (f)
as subsection (g) and by inserting after subsection (e) the following new
subsection:
`(f) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a
calendar year after 2000, the $30,000 amount contained in subsection (a), the
$2,400 amount in subsection (c), and the $125 amount in subsection (e)(11)
shall be increased by an amount equal to--
`(1) such dollar amount, multiplied by
`(2) the cost-of-living adjustment determined under section 1(f)(3) for
such calendar year by substituting `calendar year 1999' for `calendar year
1992' in subparagraph (B) thereof.
If the increase determined under the preceding sentence is not a multiple
of $50 ($5 in the case of the amount in subsection (e)(11)), such amount shall
be rounded to the next lowest multiple thereof.'
(2) Paragraph (2) of section 21(c) of such Code is amended by striking
`$4,800' and inserting `twice the dollar amount applicable under paragraph
(1)'.
(3) Paragraph (2) of section 21(d) of such Code is amended by striking
`less than--' and all that follows through the end of the first sentence and
inserting `less than 1/12 of the amount which applies under subsection (c)
to the taxpayer for the taxable year.'
(d) CREDIT ALLOWED BASED ON RESIDENCY IN CERTAIN CASES- Subsection (e) of
section 21 of such Code is amended by adding at the end the following new
paragraph:
`(12) CREDIT ALLOWED BASED ON RESIDENCY IN CERTAIN CASES- In the case of
a taxpayer--
`(A) who does not satisfy the household maintenance test of subsection
(a) for any period, but
`(B) whose principal place of abode for such period is also the
principal place of abode of any qualifying individual,
then such taxpayer shall be treated as satisfying such test for such
period but the amount of credit allowable under this section with respect
to such individual shall be determined by allowing only 1/12 of the
limitation under subsection (c) for each full month that the requirement
of subparagraph (B) is met.'
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 704. EMPLOYER-PROVIDED CHILD CARE SERVICES.
(a) GENERAL RULE- Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the following
new section:
`SEC. 45F. EMPLOYER EXPENSES IN PROVIDING DEPENDENT CARE SERVICES.
`(a) GENERAL RULE- For purposes of section 38, the employer day care
center credit determined under this section for the taxable year is the amount
determined under subsection (b) with respect to each qualified day care center
of the taxpayer.
`(b) CREDIT PER FACILITY- For purposes of this section--
`(1) IN GENERAL- The amount determined under this subsection for any
taxable year with respect to any qualified day care facility of the taxpayer
is 50 percent of the excess (if any) of--
`(A) the expenses paid or incurred by the taxpayer during the taxable
year in providing dependent care services at such facility for employees,
over
`(B) the aggregate amount received or accrued during the taxable year
by the employer for such services.
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